Higher tax threshold to benefit nearly 3m

HCM CITY — About 2.8 million people will benefit from the personal income tax waiver for the second half of this year approved by the National Assembly, the Ministry of Finance estimates.

The beneficiaries will be people earning up to VND9 million (US$430) per month, VND1.6 million added for each dependent.

The tax threshold currently is VND5 million.

The ministry estimates that the waiver will mean a loss of VND2 trillion ($96 million) to the Government, but said it would not have a big impact since this amounted to only 10 per cent of the total income-tax revenue.

Cao Si Kiem, a former State bank governor, said the exemption would have a positive impact on the economy by increasing consumer demand and enabling manufacturers to liquidate the large stockpiles they have accumulated.

The waiver would be significant for many people since inflation has affected their lives for years, he added.

Besides, some categories of businesses will enjoy a 30 per cent reduction in the tax they have to pay this year.

They include SMEs and businesses with large numbers of workers in the textile, agro-products, and seafood processing industries.